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8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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Bad News Travels Fast and damage is done
before one could react
Negative Opines
Public Space
Caught Off-guard,Denial
Organization
Delayed Response
Organization
IrreversibleDamage to
PublicPerception
Public Space
• A leading NGO turned tables on it by parodying its internetcampaign to highlight palm trees destruction in Africa.
A leading PersonalCare Brand
• Learnt it hard way when hate campaigns against it threatened
to stir up a social boycott.
One of the World’s
Largest Retailers
• Suddenly found itself in dock over unsustainable practices of its suppliers.
A Sportswear Co. R e a l - l i
f e
C a s e s
8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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Viral Media is the Arena where various
parties interact, exchange and exert influence
A consumer checks internet
for product reviews.
An existing customer posts
comments on product.
Prospective employees
research on the
companies before
applying.
Employees’ morale drops
after reading negative
opinions about their
company in public sphere.
NGOs/Activists post
comments, videos,
run campaigns to
direct public attention
Competitors put
out misleading
information
Regulators opine on the
industry issues & legalrecourse
A supplier’s news is
quickly associated
with the buyer co.
8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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Proactive Approach is Key to manage
the risks to enterprise and brand image
Search public domain and extract
content related to the company,
product, processes & partners.
Process the data using advanced
analytics to derive information &
inference
Mashing up various information
sources throws up underlying
patterns, hot spots, trends and
provides warning in advance...
Steering committee analyzes
trends, patterns, hot spots
and formulates action plan.
Influence
public opinion
Make changes to
way company
does its business
12
3
4
8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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• Search in Text & Images
• Advanced technologies searchin audio and video
• Coverage to all media sources
CoverageBreadth
• Bayesian Inference Engineprovides artificial intelligencecapabilities
• Mashups combine information& aid human intuition
AnalyticalDepth • Cloud computing provides on-
demand access to highcomputing power
• Avoids CapEx in hardware &software infrastructure
ComputingPower
Extracting Business Intelligenceis made possible by advances in Information Technology (IT)
8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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A Framework to Derive Insightsfrom gathered business intelligence to formulate action plan
(ia)3 Framework
Source: Dr. David Bach, IE Business School, Madrid
Compensation
Sense of contribution
Acknowledgment
Publicity
Retaliation
………
Blog, Social Communities
Webcast Newspapers
Interviews
Conference
…....
Organized: NGOs,
Regulators, Competitor,
Activists
Unorganized: Customer,
Employee, General Public
…....
Toxic Waste
Supplier
Sweat Shop
Employee Discontent
Customer service complaint
……..
Scientific Evidence
Public Sentiment
Polling Data
Expert/Reputed opinion
Product & process redesign
………
Reputation
Networks, contacts, allies Critical information
Access to decision makers
……..
8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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A Sustainable Action Plan is all about
doing Good & spreading good Truths
Hard Measures Soft Measures
Examples:
Switch to sustainable suppliers
Change process to eliminate toxic chemicals
Redesign product to facilitate recycling
Improve Operations to reduce carbon footprint
“ Action Speaks for Itself”
Examples:
Tweak the brand messaging
Redesign the marketing campaign
Formulate a PR exercise on CSR
Respond to online public complaints.
“Start talking to your customers/ stakeholders
before someone else starts talking to them.”
Pre-empt Risks to Enterprise Image & Brand
8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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Building a Business Case is important
to get management buy-in for the initiative
How to measure chance/intangible benefits like potential risks, losses avoided ?
Intangible assets likeGoodwill, Brand and
others are quantified onbalance sheet.
Various models areavailable to measureenterprise image and
reputation.
Real life cases of goodwill assetimpairment, litigationcosts, insurance costs,
stock erosion andrevenue losses
Analytical Models
Past Incidents
Accounting
Difference betweenMarket Value (stock
market) and Book Value(on balance sheet)
Market Behavior
8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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Beyond Risk Management it enhances
the ability to sense the shifts in the external environment & act proactively
•Changes in consumerbehavior, preferences
•New customersegments etc..
•…….
•Eg: DIY (Do It Yourself)Trends
Demand Shifts
•Logistics Trends
•Distributions Changes
•Supply Trends
•……
•Eg: Collaborativeoutsourcing
Value ChainShifts
•Competitors’ actions
•New Entrants
•New substitutes
•……..
•Eg: Kindle and virtualbook store
CompetitionShifts
•Changing politicalalignments
•Popular sentiments
•…….
•Eg: Labor orConservative
Political Shifts
•New Processingtechniques
•Disruptivetechnologies
•……•Eg: Cloud computing
TechnologyShifts
•Impendingregulations
•……..
•Eg: Shift towards
process qualityassurance
RegulatoryShifts
•New emergingmarkets
•Growth rates andeconomic indicators
•……•Eg: Rise of Africa
EconomicShifts
•Demographic trends
•Social activism
•Society behavior
•…..
•Eg: Concern forenvironment
Social Shifts
Viral Media holdsa wealth of information onhow businessenvironment Ischanging
M a r k
e t E n v i r o n m e n t
Non- Market Environment
8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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Prepare for Unpredictable and
volatile business future effectively
The price of inaction is steep and Cos cannot afford to ignore and gamble
Identify Opportunities
• Sense changes in consumer preferences
• Recognize the policy shits and impending regulations and participate in theirformulation
• Learn about the emerging best practices in the industry
• Learn what drives top talent in career selection
• Identify emerging business destinations
• ……
Reduce Risks
• Avoid adverse public opinions and bad press by proactive actions
• Keep tab on public perception of value chain partners and their actions
• Recognize when brand is being assailed in public and protect brand equity
• Reduce legal risks and litigation costs
• Protect marketing campaigns from counter campaigns
• ……
8/6/2019 Proactive Enterprise & Brand Image Risk Management_CIBMP
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THANK YOU
Please refer the published paper
‘Proactive Enterprise & Brand Image Risk Management’
for more information.
Author welcomes comments/bouquets/brickbats
Mobile: +91 7709 010 449
Email: [email protected]: www.frontiers2explore.blogspot.com
Twitter: www.twitter.com/A_Agrawal